The US transportation department has given a tentative green light to a bid by American Airlines and Qantas to operate a joint venture business.
If final approval is given, the airlines will get antitrust immunity to be able to coordinate schedules, pricing, marketing and frequent flier benefits.
Under the terms the airlines will be required to report annually on the progress of their commercial cooperation and provide a detailed report after seven years, which would undergo a comprehensive review.
It is second time lucky for the airlines.
A JV application by American and Qantas was first filed in 2016 was blocked after opposition from carriers including Hawaiian Airlines.
They decided to try again a year ago with significant amendments made.
The airlines said the agreement wouldn’t limit competition but could potentially generate up to 180,000 new passengers on flights between the US and Australasia.
Qantas had said it would ‘significantly improve service and stimulate demand.’
The two airlines have a codesharing agreement dating back nearly 30 years.
